When investors consider an investment option, they worry simultaneously about several things. Is this investment tax‐efficient? Does it reduce or increase my tax liability? Does this investment grow in value? Does it provide a regular return like dividend or interest? If they choose an investment that provides regular income, like a bond or a deposit, they get no appreciation in the value invested.
Mutual funds may not only bring in better risk-adjusted returns but may also cut costs.
Why bring in someone to do something for you when you can do it yourself – asks common sense. If you can buy and sell shares, bonds and gold, then why invest in mutual funds? Are there any benefits of investing in mutual funds? Do they pose a good investment strategy? Let’s look at the advantages of investing in mutual funds:
An investor can invest in mutual funds in a lump sum or through Systematic Investment Plans (SIPs). While SIP involves making regular investments into mutual funds, lumpsum investing refers to investing a large amount in a single transaction. Each of the investing modes has its pros and cons. The investors must choose a specific investment mode based on their financial goals, availability of investible funds, and risk appetite.
It’s been 5 years since Raj married his childhood love Maya. A gradual increase in expenses has been a concern for Maya, even after her conscious efforts of not falling prey to unnecessary expenses. But Raj doesn't give a heed to Maya’s worry and almost every Sunday morning there is a light tension in the air when they discuss about the weekly expenses.
As we enter the month of December we become just that bit more aware of ticking of time. The change of year beckons. It is customary to reminisce over the events of the year gone by. But remember that while value compounds over time; the actual passing of a year or a quarter matters very little if at all in the markets. This has been a good year for equity investors around the globe. The MSCI* All Country World Index is at a lifetime high.
Discussions in the investor fraternity tend to usually focus on markets, politics and money flow, with a few perfunctory hats doffed to topical issues such as the pollution in Delhi weather or the holiday season. This would, of course, be typical of the community, as a largely self-obsessed fraternity, focussed on the here and now and hence predominantly biased by an urban-centric view of the world.
Budget guided by mission to strengthen agriculture, rural development, health, education, employment, MSME and infrastructure sectors
General highlights
Senior citizens have plenty of reasons to cheer post the Union Budget. One of the biggest is the increase in deduction limit under Section 80D of the Income Tax Act.
Section 80D limit hike
